Reverse Floater

This Issue in United States

Reverse Floater

Concept of Reverse Floater in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An interest rate swap (i.e. an agreement to exchange interest rate cash flows) where the floating rate has a coupon which rises when the underlying floating rate falls, thus when the market floating rate falls, the payout increases, (see Inverse floaters).

Resources

See Also

• Derivatives Contract